Innergex Power Income Fund, Innergex Renewable Energy To Combine Into Single Entity

Innergex Power Income Fund (the fund) and Innergex Renewable Energy Inc. (INE) have entered into a definitive agreement to undertake a strategic combination of the two entities. The fund plans to acquire INE by way of a reverse takeover, thereby effecting the conversion of the fund to a corporation. The combination will create a pure play corporation that will be one of the largest independent renewable power producers in Canada, according to the companies.

The fund has agreed to pay a consideration valued at C$7 per share of INE, representing an exchange ratio of approximately 0.685 fund unit per INE share, based on a deemed unit price of C$10.22.

The combined entity will own a portfolio of 100% renewable-energy-generating assets producing cashflow combined with extensive growth opportunities, according
In total, on a net interest basis, combined Innergex will own 326 MW of installed capacity in operation. An additional 128 MW of renewable power is expected to come online within the next two years. Combined Innergex will generate 73% of its power from hydroelectric facilities and 27% from wind facilities.

Combined Innergex will benefit from an improved asset diversification, owning a net interest in 326 MW distributed across 14 operating hydro projects (204.1 MW) and three operating wind farms (121.4 MW). It will also have four projects under development with power purchase agreements (103 MW of wind and 25 MW of hydro) and over 1,600 MW (net) of various prospective projects.

Once approved by the fund unitholders and the INE shareholders, the plan of arrangement must then be sanctioned by the Superior Court of Quebec.

SOURCES: Innergex Power Income Fund, Innergex Renewable Energy Inc.


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